I have a fixed deposit of Rs.80000/ on maturity- bank deducted TDS -though my interest income is below Rs.10000/.Bank says any interest income TDS tobe deducted. Pl advice.
2007-08-22 05:43:18 · 5 answers · asked by SUBHA S 1 in Business & Finance ➔ Taxes ➔ India
u already have four answer. let me try to give u a clearer answer. There is No Tax on Bank Deposit. TDS is deducted if the interest amount due to you exceed rs 10,000/- per annum. On rs 80,000/ fd the interest has to be less than rs 8000/-. so no TDS. But if u have a savings bank account in the same branch and the interest credited to your account plus the interest on FD exceeds rs 10,000 bank will deduct TDS. hope i am clear have a nice day
2007-08-22 16:27:59 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The bank is not liable to deduct TDS on deposit interest if it is below Rs.10000/= this financial year[year ending March2008].The threshold limit for mandatory deduction of TDS was Rs.5000/= for y.e.March2007.However TDS deduction can be waived if the depositor submits form15G stating that his income for the year in question is within taxable limits.
2007-08-22 05:59:20 · answer #2 · answered by chids 3 · 0⤊ 0⤋
heyya dear....
TDS is not applicable to this deposit scheme .
The depositor pays the Bank a minimum stipulated amount of money every month for 3 years, at the end of which the accumulated deposit together with interest is repaid to him/her. The Depositor has the option to remit 10 times of stipulated monthly instalment in a month and withdraw part of the Deposit at the end of 1st and 2nd year of deposit. Minimum amount of deposit is Rs 500/- p.m. and thereafter in mulltiples of Rs 100/-. There is no maximum limit.
The rate of interest will be payable at the rate decided by the Bank from time to time. Interest is paid annually and is ploughed back into principal every year. However the interest will be compounded on quarterly basis so as to fetch higher yield on the investment.
The account can be opened by an individual in his / her own name, individuals in their joint names with suitable repayment instructions,minors represented by guardian and by clubs,societies, associations etc.
TDS is not applicable to this deposit scheme .
2007-08-22 06:07:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You know that TDS is not applicable on Recurring deposit and Saving bank account of Banks.
The rate of interest on RD a/c is still higher than sb a/c
2007-08-22 06:33:08 · answer #4 · answered by CA,S K somani 3 · 0⤊ 1⤋
TDS is applicable for bank F.D.'s above Rs.10,000/-
2007-08-22 07:18:05 · answer #5 · answered by Sameer R 2 · 0⤊ 0⤋